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Motilal Oswal Finance Services jumps after Q4 PAT climbs 66% YoY; board OKs 3:1 bonus issue

26-Apr-24 16:47 Hrs IST

Operating revenue jumped 60% YoY to Rs 1,569 crore in Q4 FY24.

The company reported highest ever quarterly capital market business PAT of Rs 251 crore, up 68% YoY and 23% QoQ. Revenues for this segment were Rs 982 crore, up 68% YoY and up 28% QoQ in Q1FY24. Capital markets comprise of retail broking and distribution, institutional equities and investment banking business. Overall, the company's average daily turnover (ADTO) grew 122% YoY and 26% QoQ.

Asset and Wealth Management revenues were Rs 589 crore in Q4FY24, up 58% YoY. Profits were Rs 210 crore in Q4 FY24, up 79% YoY. Asset Management business AUM across MF, PMS & AIF grew strongly to Rs 71,810 crore, up 57% YoY and 11% QoQ.

Housing finance business PAT was Rs 31 crore in Q4 FY24. The segment AUM grew by 6% YoY to Rs 4,047 crore as n 31 March 2024.

Meanwhile, the company has issuance of bonus shares in the ratio of 3:1 i.e 3 equity shares of face value of Rs 1/- each for every 1 existing equity share of face value of Rs 1/- each held by the shareholders of the company.

Motilal Oswal, MD & CEO said, ?38% growth in FY24 Operating PAT to 1,535 crore and Consolidated PAT of 2,626 crore is a testimony to the structural tailwinds in our core businesses of capital markets and asset & wealth management. Capital market business remains significantly underpenetrated with most exciting 5 years ahead of us. Our presence in 98% of pin codes & 6% cross-sell ratio provides us with a ready base and headroom to grow our distribution business.

With 95% of MOAMC strategies outperforming the benchmark, turnaround in Gross & Net Sales, presence across MF & Alternates, focus on equities and launch of new products, AMC business should once again take the growth leadership for MOFSL.

Huge investments in our Wealth management business, strengthening of leadership across regions & functions combined with the wealth effect under way should all come together to make this business our next growth engine.

HFC business reported 0.4% Net NPA and focus is back on growth with sales team doubled in FY24 and set to doubled again in FY25, paving way for doubling of disbursements. Such synchronized tailwinds and growth runways across our businesses are drivers to our large investments in talent, brand building and infrastructure. The unique twin engine of highly growth-high RoE Operating businesses and 18+% X1RR on treasury management has resulted in a Consolidated Roc of 35%, fueling undiluted growth and healthy payouts since our listing in 2007.?

Further, due to internal reorganization, the company?s board has approved the change in designation of Navin Agarwal from non-executive director to executive director by appointing him as managing director of the company, being liable to retire by rotation, for a term of five years from 26 April 2024 to 25 April 2029.

Furthermore, Prateek Agrawal, designated as managing director and chief executive officer of Motilal Oswal Asset Management Company (MOAMC), a material subsidiary of the company and Sandeep Walunj designated as chief marketing officer of the company in place of Rohini Kute, Head - Corporate Communication.

Motilal Oswal Financial Services is a financial services company. Its offerings include capital markets businesses (retail broking, institutional broking & investment banking), asset & wealth management (asset management, private equity & wealth management), housing finance & equity based treasury investments.